NYSE Arca amends Rule 7.12-E to keep 4 a.m. resumption after Level 3 halt
The amendment applies to NYSE Arca trading and takes effect immediately, preserving the 4:00 a.m. ET restart after a Level 3 market-wide circuit-breaker halt despite the exchange's shift to 23-hour trading on Dec. 6, 2026.
On September 4, 2026, NYSE Arca, Inc. filed a proposed rule change with the Securities and Exchange Commission (Release No. 34-106378; File No. SR-NYSEARCA-2026-94). The notice published on September 15, 2026 (FR Doc No. 2026-19123) announces immediate effectiveness of the amendment to Rule 7.12-E, which governs trading halts due to extraordinary market volatility.
The amendment deletes the existing language in Rule 7.12-E(b)(ii) that requires a halt "for the remainder of the trading day" after a Level 3 market-wide circuit-breaker (MWCB) decline. It replaces that language with a provision that trading in all stocks will remain halted until 4:00 a.m. ET or later on the following trading day. This preserves the current 4:00 a.m. ET resumption time even after NYSE Arca expands its schedule to a 23-hour, five-day trading model, which will introduce an Overnight Trading Session from 9:00 p.m. ET to 4:00 a.m. ET on December 6, 2026.
The Exchange cites Section 6(b) of the Securities Exchange Act and Section 6(b)(5) as the statutory basis, emphasizing that the change promotes just and equitable trade, protects investors, and maintains market stability. The amendment does not alter the substantive mechanics of the MWCB system; it merely codifies a coordinated decision among NYSE Arca, other U.S. equity exchanges, and FINRA to retain the existing cooling-off period.
The Commission is publishing this notice to solicit comments from interested persons. The proposed rule change is expected to align NYSE Arca's resumption protocol with that of other self-regulatory organizations, ensuring a harmonized approach across the national market system.
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